How Much Will a New HVAC System Cost in 2025?

by | Feb 17, 2025 | HVAC, Heat Pump, Furnace, Installation, Air Conditioner

As we head into this New Year, we at Five Star Home Services would like to answer a question we’ve been getting asked a lot recently and one we expect to continue getting asked because of recent changes in our industry.

That question is: “How much will it cost for a new HVAC system in 2025?”

Estimated Cost of a New HVAC System in 2025

According to recent estimates, a new HVAC system in 2025 is expected to cost between $5,000 and $12,000 on average, with variations depending on factors like:

  • Type of system
  • Size of the home
  • Installation complexity

Impact of New EPA Refrigerant Regulations on HVAC Pricing

Due to new EPA regulations mandating environmentally friendly refrigerants, prices could increase by 20-30%, meaning costs might range from $6,500 to $15,600 or more for some systems.

With this in mind, we’d like you to consider a few points.

Key Factors Affecting HVAC Costs in 2025

The new refrigerants: The primary reason for the expected price increases is the shift to new, more environmentally-friendly refrigerants such as the R-454B and R-32. As of now, they have completely stopped the production of systems with R-410A. The newer systems using the new refrigerants can be more expensive to manufacture and install.

Higher efficiency standards: Newer HVAC systems will likely meet stricter energy efficiency requirements, further impacting their price.

Installation costs: Labor costs for installing new systems with advanced features could also increase.

Why are Air Conditioning Prices Are Going Up in 2025?

So this is the deal: These new EPA rules are raising the bar for how energy-efficient air conditioners need to be. The idea behind it is to make new systems better for the environment. Nevertheless, it is also making them cost more.

You could look at it like this:

Buying a new phone with the latest features will cost you more than an older model with outdated features. The same is true for Air Conditioning systems. Expect prices to increase by about 20-25% because manufacturers must use new tech and materials. You can visit the EPA website here for more on these new requirements.

Also, keep in mind that a new system can eventually counter the higher installation cost for a few reasons.

  1. The new system will be more energy efficient and cost less.
  2. It will increase your home value and three (which might not affect your wallet as much as the world around you) it will be more environmentally friendly!

Benefits of Upgrading Your HVAC System

As we’ve noted, new home comfort equipment is a great way to boost your home’s value. Modern HVAC systems are more efficient and make your home more appealing to potential buyers. Installing a newer HVAC system, on average, could raise your home’s value by 5 to 10%. If you hope to sell the home shortly, a newer system could make your home stand out more!

Also, while the upfront cost of a new system is higher, modern HVAC systems are significantly more energy-efficient, reducing your energy bills.

What Can You Do to Prepare?

The following are a few suggestions we offer to help you be prepared for the upcoming changes:

Keep Your System in Optimal Condition: Regular preventative maintenance helps your existing system last longer and run more smoothly.

Consider Replacing Early: If your HVAC system is older, replacing it now can help you avoid the higher costs that are coming. There will be a year grace period (this year) on all equipment that was made before the change, so now is the time to buy!

Look for Rebates: Check for rebates and incentives to help offset the cost of upgrading to a new, energy-efficient HVAC system. We can help you with this as well.

Opt for Energy-Efficient Models: Investing in an energy-efficient unit now can save you money on energy bills and boost your home’s value.

These new changes in 2025 will make air conditioners better for the environment and more energy efficient and expensive. Understanding this and planning lets you make the best decision for your home and wallet. At Five Star Home Services, we are here to help you navigate these updates and find the right solution for your needs. Feel free to contact us if you have any questions or need advice.

For more information or to schedule a free estimate with Five Star Home Services, call us today at (833) 405-8009. I’d be more than happy to discuss your options with you.

  • Gage Rhodus, HVAC Specialist

    Gage is a skilled HVAC specialist at Five Star Home Services, dedicated to keeping homes comfortable year-round. With a strong background in heating and cooling systems, he takes pride in diagnosing issues quickly and providing top-quality repairs and installations.

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